Is Bitcoin At the Bottom? Volatility Seems to Suggest So

The volatility of the Bitcoin markets has reached an all-time low, making this one of the quietest times in the history of crypto currency.

According to the findings of on-chain research, the level of volatility in the Bitcoin market is currently at its lowest point ever. Crypto researchers have been keeping an eye on the historical levels of BTC volatility, and they have reached their lowest point.

The last time volatility sank (1) to levels nearly equivalent to those seen today was toward the end of 2018. The price of crypto currencies continued its downward trend throughout the entirety of that year, mirroring the current bear market conditions.

Following the completion of the final flush out on December 15, when Bitcoin's price dropped to $3,200, volatility spiked once more before the close of that year.

Several other analysts also confirmed the new low in Bitcoin's volatility. During the previous month and a half, the asset's value fluctuated between $15,700 and just a hair over $18,000. Because much of the world is celebrating a holiday, there is unlikely to be a significant uptick in market activity until the following month.

It was brought out that rallies have historically followed times of such low volatility. According to the statements (2) of one analyst, "every time volatility fell below value '1,' it was followed by a bullish rally except for October 2018," which was the only exception.

The Bitcoin Hash Rate Continuously Declining

Other metrics than its volatility can also measure Bitcoin's decline. The network's hash rate is also alarming; however, the two trends may not be connected in any way.

On December 25, hash rates dropped to 229 TH/s, which stands for terahashes per second, according to Blockchain.com. Compared to the all-time high reached the beginning of November, this is a decline of 16%.

The current drop is said to be attributable to miners in Texas shutting down their operations because of the bad weather conditions and the increased demand for electricity grids. There have been rumors that another round of mining layoffs is on the way, although those rumors have not been confirmed.

Technicals of Bitcoin

The bitcoin price has not changed much over the weekend, and it is currently trading between $16,500 and $17,000 during the holiday season.

Despite this, Bitcoin (BTC) reached a five-day peak of $16,895 during a trading session on Monday morning in Asia. Since the asset's price dropped below $17,000 on December 16, there has been no genuine forward movement; since then, it has leveled out.

The total valuation of the crypto currency market is currently around $770 billion, which is quite close to the heights reached during the bull market in 2017-19. Most market researchers are in consensus that with a loss of 74.5%, markets are getting very near to the bottom of this bad cycle.